What is an NFT | NFT Wallet | How to Buy and Sell | Why are NFTs Expansive?

What is NFT || NFT Wallet || How to buy and sell NFT

What is an NFT?

NFT is an abbreviation of Non-fungible token. It is a non-interchangeable unit of data that is stored on the blockchain. So, it means the data that we store digitally on different websites, like images, videos, art, graphic design work, etc. We can’t interchange that by using the blockchain. We can sell out and trade the NFT by using cryptocurrencies like Bitcoin, ether, etc.
Each NFT is identified by a token because that token is assigned to every NFT uniquely.

When a person purchases an NFT through a platform then he claims a public certificate of authenticity or the certificate of ownership of that NFT.

What is an NFT Wallet?

An NFT Wallet is a cryptocurrency wallet that supports the currency through which you can buy the NFTs, such as Ether Crypto wallet. An NFT Wallet supports the blockchain protocol on which NFTs are built. An NFT Wallet is a very safe way to buy and sell NFT (Non-fungible tokens). There are many types of wallets that you can use to store your NFTs.

How do NFTs Buy and Sell?

A creator can create and trade NFT on platforms like Ratable, Super Rare, Ethereum, etc. This platform allows the creators to create NFTs by using blockchain technology. Blockchain technology is a type of technology that can’t be changed or copied. It means that when once an NFT is created, then nobody can ever change or alter the ownership of that NFT, and neither he can be recreated.

Once NFTs are uploaded to the marketplace they it’s available for the public, and anyone can be bought or sold them like stocks.

Read this also:: Top 10 NFT marketplace to Buy and Sell

Why NFTs are so Expensive?

The first thing is that NFTs are Non-fungible, which means that the ownership of an item has strictly lies to the person and no one can make a copy exactly of that item. The owner can’t exchange that item with any other person. He only gives that item to another person by giving complete ownership of that. These things make these assets very unique.

Some other factors that make the NFTs very valuable are utility, ownership history, perception of the buyer, underlaying value, and future value.

How NFTs are different from Cryptocurrency?

What is an NFT
The image Source is Unsplash

NFTs are different from Cryptocurrency in that manner, by using cryptocurrency you can purchase many items, products, digital assets, etc, but by NFT we can’t do this. This is the reason it’s different from Cryptocurrency.

How these NFTs are created?

The process of creating the NFTs is called minting. Artists, graphic designers, gamers, different brands, and also musicians can create the NFTs. After creating the NFTs, they put up these for sale on a different marketplace like Open sea, mintable, Axie marketplace, rarible, super rare, etc…

Usually, the creator of the NFT attaches a certain commission with their work, So that when anyone purchases NFTs, then the creator of that work gets paid automatically.

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